Quick answer: Employee onboarding is everything you do between a signed offer and a fully working new hire: the appointment letter, statutory registrations, payroll set-up, equipment and induction. In India, the OSH Code makes a written appointment letter compulsory for every employee, and EPF runs on the joiner’s Universal Account Number.
- Written appointment letters became compulsory for every employee when the Labour Codes took effect on 21 November 2025.
- Since 1 August 2025, a new UAN can only be generated through Aadhaar face authentication on the UMANG app.
- EPF is 12% from each side, on a wage ceiling that rose to ₹25,000 a month on 17 September 2026.
- ESI covers employees earning ₹21,000 a month or less.
What does the onboarding process in India involve in 2026?
Four tracks run in parallel: paperwork, statutory registration, tax and the workplace itself.
Paperwork comes first. Section 6(1)(f) of the OSH Code on India Code requires a letter of appointment for every employee on appointment. The central rules prescribe a format and state rules are still being finalised, so an old appointment letter template may fall short.
Registration is next. The joiner generates or links a UAN for EPF. Since August 2025 that happens through face authentication on UMANG, as KPMG’s note on the EPFO circular explains. Your HR team can no longer create it for them.
Then tax. Short step. The employee declares rent and investments on Form 124, the successor to Form 12BB, so payroll can estimate TDS from month one.
Checks need care. Background verification shares a candidate’s personal data with third parties. Section 7(i) of the DPDP Act covers processing “for the purposes of employment”, but a candidate who has not yet joined fits that less neatly. Written consent is the safer basis.
What does a new hire’s first payroll look like?
It carries statutory lines from day one, even before the joiner has finished induction.
Let’s say you hire a Pune engineer at ₹60,000 a month gross, with basic and DA of ₹30,000. You pay PF on the ₹25,000 ceiling.
| Line in month one | Employee pays | You pay |
|---|---|---|
| EPF at 12% of ₹25,000 | ₹3,000 | ₹917 |
| EPS (inside your 12%) | Nil | ₹2,083 |
| EDLI and EPF admin | Nil | ₹250 |
| ESI | Not covered, gross above ₹21,000 | Not covered |
| Maharashtra Professional Tax | ₹200 | Nil |
Chase the UAN in week one. Not week four. The first EPF return falls due on the 15th of the following month.
How does employee onboarding work under an EOR?
The EOR onboards the person as the legal employer, while you onboard them into the work.
So the EOR issues the appointment letter, registers PF and ESI, collects Form 124 and runs payroll through its Indian entity. You set the role, the manager, the tools and the first 90 days of goals.
Laptops sit in between. Agree early who ships the IT equipment and who signs the handover note, because every item logged now becomes a line on the offboarding checklist later.
How does Remunance onboard your India hires?
Remunance onboards employees in as little as 2 working days from a signed contract. Your hire is employed by Remunance Services Pvt Ltd, our Pune entity. Background verification and laptop provisioning are bundled, so your hire starts with a cleared file and a working machine. Our walkthrough of how Remunance manages employee onboarding shows each step. When you are ready, plan your first India hire with us.
What else do people ask about employee onboarding?
What documents are needed to onboard an employee in India?
PAN, Aadhaar, an Aadhaar-seeded bank account and the UAN cover the statutory side. Add education and experience proof, plus the previous employer’s relieving letter.
Is an appointment letter the same as an offer letter?
No. The offer letter is a proposal the candidate accepts. The appointment letter confirms the employment itself, and the OSH Code makes it mandatory.
How long does onboarding take in India?
Paperwork and registrations can close within days if documents are ready. Full productivity depends on the role, so put 30, 60 and 90 day goals in writing.